1What two ways does color of title benefit an adverse possessor?
(1) Many state statutes significantly reduce the SoL period w/ color of title.
(2) AP w/ color of title who successfully proves an adverse possession claim based on actual possession of a part of the tract described in the document constituting color of title is deemed to be in constructive possession of the whole tract.
2How does paying taxes affect actual possession?
While paying taxes helps establish actual possession, unless applicable adverse possession statute requires payment of taxes as an essential element, an adverse possessor is not required to pay taxes and, in fact, may claim adverse possession even though the true owner pays the taxes.
Selling the land, mortgaging it, or renting it to others could constitute actual possession.
3Who bears the burden of proving the boundaries to the land used adversely?
AP bears the burden of proving the boundaries to the land used adversely.
4Teresa, a trespasser, occupied and used a 20-foot strip beginning in Year 1. Started using 10 more feet in Year 5, and another 30' in Year 10. Teresa brought an action in Year 11 that she owned the 60-foot-wide parcel of land by adverse possession. The applicable adverse possession statute provided for a seven-year SoL's period.
Assuming she can prove the other elements, she may claim only the ten-foot strip she entered in Year 1.
If she can't identify the boundaries of this, a court may rule she can't prove actual possession of any of the land for the requisite period.
5Wally owned Blackacre, a 500-acre parcel of land in Arkansas. Wally sold and deeded Blackacre to Edwin, who lived in St. Louis. Years later, Wally died. Wally’s daughter, Serena, believing she inherited Blackacre, sold and deeded Blackacre to Judy. The deed to Judy didn't convey good title to Judy since Serena didn't own Blackacre. The faulty deed was color of title. Judy used five of 500 acres as her residence, and lived there for the statutory period.
What would the court find?
B/c Judy has color of title, she's adversely possessed all 500 acres described in her deed, not just the five acres she actually possessed.
6Shortly after buying Blackacre Edwin moved to Arkansas, cleared five acres of Blackacre, and lived there. Edwin remained unaware that Judy was residing on another five acres of Blackacre. When and what can Judy claim?
After the SoL period has passed, Judy may claim only the five acres she actually possessed.
7How does constructive possession benefit the adverse possessor?
- Adverse possessor occupying one lot has constructive possession of several lots conveyed separately if all are enclosed as a unit.
- Reaches several lots conveyed in one document even lots separately described in the deed.
- If deed describes multiple lots—some occupied, some not—constructive possession extends to lots that don't adjoin occupied land.
8What are the 4 rules of remainders?
(1) Must be created at same time and by same instrument that creates prior estates
(2) May never follow a fee simple defeasible
(3) May never cut short the prior estate(s)
(4) There can't be a time gap between termination of prior estate and remainder
9What words did the Supreme Court of Kansas state were recognized as sufficient to express automatic expiration?
- "until",
- "so long as",
- "during",
- "Upon the happening of [stated event] the land is to revert back to the grantor"
10Covenant
- An agreement that legally restricts the owner from engaging in certain defined uses of the land
- violation doesn't result in forefeiture, but subjects the landowner to action for damages or injunction forcing future compliance with restriction.
11What is the MAJORITY rule for adverse possession with regards to fee simple subject to a condition subsequent?
- Statute doesn't start to run until O takes action (suing A).
12What is the minority rule for adverse possession with regards to fee simple subject to a condition subsequent?
- Statute starts to run when condition breaks (as w/ FSD)
13Can a grantor waive their power of termination?
Yes
14Why have courts been wary of defeasible fee simple estates?
- Courts hate forfeiting land unless the grantor's intention to create a defeasance is manifestly clear
- A defeasible fee simple estate may be more difficult to sell, lease or mortgage because of risk the title will be lost upon breach of the limitation or condition.
15In the case in which a deed contained no reversionary clause: ("To A and his heirs, assigns, and successors forever, it being understood that this grant is made for school purposes only").
What type of estate did the Supreme Court of Kansas find had been made?
Fee Simple Absolute
16What happens if A has a fee simple determinable and one of the conditions is broken, but O does not take action?
In all states, the statute of limitations begins to run against O at the time the condition was broken
17How do Contingent Remainders and Vested Remainders look different?
(1) Contingent Remainder = Unborn or unascertainable, such as "heirs" or children.
(2) A Vested Interested = Ascertainable
(3) Contingent Remainder = Subject to a Condition Precedent, (usually survival).
18Fee Simple Subject to Executory Limitation
- Alienable, devisable, & descendible
- "as long as" ; "while" ; "during" ; "but if"
- Contains a condition and followed by a shifting exectury interest in 3rd party
- Automatically terminates so SOL starts when broken.
19"To A, as long as no timber is harvest on Blackacre otherwise to B"
What are the interests?
- A's estate has fee simple subject to an executory limitation
- B's future interest is: Shifting executory interest, Subject to the rule against perpetuities.
- O has nothing
20Remainder
- Future Interest following a life estate created in a grantee/transferee, that follows the natural end of the previous owner.
21What are the two Future Interests Created in the Transferor?
(1) Possibility of Reverter
(2) Power of termination (right of entry or reentry)
22What's the difference between Possibility of Reverter and Power of Termination?
- Possibility of Reverter follows a determinable estate (fee simple, life estate, term for years)
- Power of termination (right of entry or reentry) follows an estate subject to a condition.
23What three rule of remainders do Executory interests break?
(1) They follow a fee simple defeasible
(2) They are able to cut short a prior estate or interest
(3) They follow a time gap.
24Fee simple subject to an executory limitation is created by:
- "as long as"
- "while"
- "during"
- "but if"
25Difference between Shifting and Springing Executory Interest?
- Shifting divests transferee's interest.
- Springing divests transferor's interest.
26How to determine whether there is a person who can serve as a "validating life."
- Need one for the future interest to be valid under RaP
- Validating life must've been in existence when future interest was created.
- Validating life must be relevant to vesting/failing of interest.
27Shifting Executory Interest
Divests the estate or interest of a transferee.
28Adverse Possession with Future Interests
(1) FSD: Clock starts running after estate ends if GE retains possession.
(2) FSCS: Clock only starts running after forfeiture claimT/failed attempt to re-enter.
29Difference between a reversion and a possibility of reverter?
- If you hold a possibility of reverter, it's not guaranteed the property will revert back b/c the condition triggering it may not happen.
- A reversion is guaranteed to happen when the lesser estate naturally terminates.
30Is a reversion alienable, devisable, or descendible?
Yes, a reversion is alienable, devisable, descendible.
31Are indefeasibly vested remainders alienable, devisable, or descendible?
Yes, indefeasibly vested remainders are alienable, devisable, and descendible.
32Reversion
A future interest that's retained by the GR after the conveyance of an estate of a lesser quantum than he has (such as fee simple granting a life estate or a leasehold).
33Ark. Code Ann. § 28-39-201
- (a) If owner of a homestead dies leaving a surviving spouse, but no kids, and surviving spouse has no separate homestead in their own right, the homestead shall be exempt, and the rents and profits thereof shall vest in the surviving spouse during his or her natural life.
- (b) However, if owner leaves one (1) or more kids, the kids shall share w/ surviving spouse and entitled to one-half (1/2) the rents and profits till each of them are 21, each child's right to cease at 21, and the shares to go to the younger children and the all to go to the surviving spouse. The surviving spouse or children may reside on the homestead or not.
c. In case of the death of the surviving spouse, all of the homestead shall be vested in the minor children of the original homestead owner.
d. Marriage of one (1) year required.
34Majority Rule For Tenancy by Entirety: (not AR)
Neither spouse can convey individually, and creditor of one cannot levy against tenancy including right of survivorship.
Such conveyances are VOID.
35Minority Rule For Tenancy by Entirety: AR and a few others
- Either spouse can convey his/her 1/2 interest in rents/profits and survivorship right, but cannot encumber other spouse's interest in rents/profits or survivorship right
- Creditor can levy against anything a person can convey.
36In Arkansas, can one spouse's TBE interest be sold to satisfy a judgment lien?
Yes
37Ark. Code Ann. § 28-9-214
The heritable estate of an intestate as defined in § 28-9-206 shall pass as follows upon the intestate's death:
(1) To children of the intestate and the descendants of each child of intestate who may have predeceased the intestate. Children and decedents will take per capita of per stirpes according to §§ 28-9-204 and 28-9-205;
(2) If intestate is survived by no descendant, to intestate's surviving spouse unless intestate and surviving spouse had been continously married less than three (3) years next preceding the death of the intestate, in which event surviving spouse will take merely fifty percent (50%) of intestate's heritable estate;
(3) If intestate is survived by no descendant or spouse, to intestate's surviving parents, sharing equally, or to the sole surviving parent if only one (1) of them shall be living;
38Ark. Code Ann. § 28-11-301
If a person dies leaving a surviving spouse and a child or children:
(a) The surviving spouse shall be endowed of the third part of all the lands for life whereof his or her spouse was seized, of an estate of inheritance, at any time during the marriage, unless the endowment shall have been relinquished in legal form
(b) A person shall have a dower or curtesy right in lands sold in the lifetime of his or her spouse without consent of the spouse in legal form against all creditors of the estate.
39Ark. Code Ann. § 28-9-206
What may heirs inherit and what are they subjected to?
(a) Heirs may inherit every right, title, and interest not terminated by the intestate's death in real or personal property owned by an interstate at the time of the intestate's death and not disposed of by will.
(b) The rights of heirs will be subject to:
(1) The dower or curtesy of the intestate's surviving spouse
(2) The homestead rights of the surviving spouse and children of the intestate, including the quarantine rights of the surviving spouse
(3) All statutory rights and allowances to the surviving spouse and minor children
(4) Any rights of a serving spouse in respect to income tax refunds made pursuant to a joint federal income tax return
40What are the rights of heights subjected to under Ark. Code Ann. § 28-9-206
(b) The rights of heirs will be subject to:
(1) The dower or curtesy of the intestate's surviving spouse
(2) The homestead rights of the surviving spouse and children of the intestate, including the quarantine rights of the surviving spouse
(3) All statutory rights and allowances to the surviving spouse and minor children
(4) Any rights of a serving spouse in respect to income tax refunds made pursuant to a joint federal income tax return
41Limitations of Dower/Curtesy If intestate
If decedent survived by children, life estate in 1/3 of real property, same as against creditors–kids will take the rest, depending on what’s owed to creditors If decedent not survived by kids, 1/2 of all property, 1/3 as against creditors.
42Limitations of Homestead Life estate in home
- To Spouse and/or minor kids –or “head of household” – can be divorced
- Maximum 80 acres in the country
- Maximum 1/4 acre in town
- Homestead is a life estate for spouse or right of kids to occupy until they turn 21
- Spouse plus kids-share till kids turn 21
- Conveyance of homestead without spouse’s signature is void
43Spouse’s elective share If a will
Same as the limitations of Dower/Curtesy If intestate, also with respect to creditors. However, what is left over and doesn’t go to the spouse or creditors will pass under the will.
44Inchoate Dower/Curtesy A lien against property
If land sold without consent of surviving spouse, and seller spouse dies within seven years–dower/curtesy value of interest is a lien on the property–amount depends on whether surviving kids, or not–but kids themselves get nothing.
45H died intestate, owning 300 acres of farmland in Pope County. H was survived by a son. What is W's dower share?
- Share when decedent survived by Child(ren)
- A life estate in one-third. Can be marked off. W would receive income from crops while alive. After death, goes to H's issue (son)
- Or, if property is sold W receives her share commuted to present day value. [You will not be tested on the calculation of commutation to present value.]
46Dower/Curtesy Problem
W dies intestate, owning 300 acres of farmland in Stone County. W was not survived by children. What is H's curtesy share?
- H owns 150 acres FSA
- Unless\/until partition, holds 1/2 undivided interest as tenant in common with heirs
- May own all if married long enough, because will take heritable estate as well.
- All you need to know is dower/curtesy share
47Inchoate Dower Problem
H conveyed 300 acres of land in Van Buren County to X. X purchased title insurance as part of the transaction. W did not know about the conveyance and did not participate. H died 5 years later, survived by no children.
- What are W's rights as against X?
- What if X had no title insurance?
- W has a lien for the value of her dower interest (1/2 in fee simple absolute) of the land. The title insurance company will pay her. It may be able to recover from H's estate.
- X would be liable for her dower interest.
48Can disabilities cannot be tacked?
No, disabiities cannot be tacked.
49SoL rule for Disabilities
- SoL won't run against a true owner who was incapacitated at the time AP moves on the property.
- Typical disabilities are: Prison, Incapacitaded, Insanity, Child, Minor
50Implied Residential Quality Standards, AR ST § 18-17-502
What is required for all lease agreements after November 1, 2021 at time of possession and throughout the lease term?
(1) Hot and cold running water;
(2) Electricity
(3) Potable drinking water
(4) Sanitary plumbing and sewage that conforms to code in existence at installation
(5) Fnctioning roof and building envelope
(6) HVAC as it was at the time the landlord and tenant entered into lease.
51Under AR ST § 18-17-502 what is a tenant entitled to do if a dwelling or single-family residence does not comply with subsection the minimum quality of standards?
Tenant is entitled to deliver written notice of the noncompliance to the landlord by certified mail or any other method provided by the lease or rental agreement and shall specify the acts and omissions.
(2) Landlord has thirty days of receipt to remedy
(3) Otherwise tenant has to terminate the lease w/out penalty and receive a refund for security deposit.
52Under Arkansas Statute, is a tenant ever excused from paying rent?
Only future rent after notice of termination.
Liable for past rent.
53Fee Simple Absolute
- Largest estate w/ infinite present possessory interest
- Right to possess, use, exclude, encumber, and alienate property.
- Alienable, devisable, descendible.
- No other future interests
54Life Estate
- Owned by a life tenant who continues on in possession instead of Fee Simple Absolute
- Conveys an ownership interest that is limited to the life of the person holding it.
55Seisen
Law of adverse possession is a synthesis of statutory and decisional law.
56Tacking
- Continuing to run the SoL clock after change in possession, but only if there's privity between them.
- The time of two different APs placed together only if there's privity between them.
57Tolling:
- Allows minor and incapacitated title holders to extend the required Statutory Period until the minor has reached the age of majority or incapacity ceases to be an issue.
- Effectively extends time requirements beyond the Statutory Period.
- Disability at the time AP begins
- Cannot tack disabilities
- Minority, incapacity, imprisonment, military service.
58Is color of title required for AP?
Only in a few states.
59Majority and Minority Rule for Tolling
- Majority: disability must be present when adverse possession begins. Tacking is not allowed
- Minority: Tacking is allowed. More time after disability ends to bring suit. (AR = 3 years)
60Good Faith Improver Statute
- If you make an honest mistake, and build on someone else's land, they own whatever added.
- Court will rarely grant a forced conveyance.
- Court may grant some relief to someone who mistakenly builds on someone's property to prevent unjust enrichment, usually damages.
61Doctrine of Accession
Whatever is affixed to the land becomes part of the land.
62Doctrine of Fixtures
- Personal property that is added to real estate in such a way that it becomes part of the real estate
Three Part Test (TIPA):
(1) Type of fixture is appropriately applied for its use as connected to realty.
(2) Intent of party installing chattel.
(3) Partie's relationship
(4) has the item been Annexed to the realty?
63How may boundary disputes be resolve?
Boundary disputes may be resolved by the doctrines of agreed boundaries, estoppel, and acquiescence.
64Estoppel Doctrine
- Party whose rights are to be barred must've silently looked on with knowledge of the true line while the other party encroached on the property or subjected himself to expense which he would not have incurred had the line been in dispute.
- You have someone who makes an assertion and someone else relies on it.
- Court will uphold it.